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Digital Transformation:Take it …or leave!

Digital TransformationA journey with some pitfalls

9th November, 2016

wfanet.org @wfamarketers


“The realignment of, or new investment in, technology and business models to more effectively engage digital customers at every touchpoint in the customer experience lifecycle”


1. Ensuring brand relevance in the age of the connected consumer –

‘Very important’ for 70% of respondents

2. Integrating all social, mobile, web, ecommerce, service efforts and investments to deliver an integrated and frictionless customer experience


3. Effective measurement of marketing investment and ROI


The main drivers for businesses…


It is not the strongest of the species that survives, but the one that is best able to adapt to the changing environment in which it finds itself.

Charles Darwin

“

”

wfanet.org @wfamarketers11%On the agenda for 2016

In the initial planning stages

13%

Framework in place 34%

Strategy in early deployment37%

5%Process highly advanced

Most clients taking this seriously…


In reality there are multiple stages of digital maturity…

Connecteds

Integrators

Pioneers

Analogues

Internal factorsStrategy, Culture, Tech, Operations

Exte

rnal fa

ctors

Mark

eting, In

sight,

Perf

orm

ance

Analogues Basic content and social media, but limited data-led decision making.

Pioneers Good content and social impact. Customer focused, always-on community management.

Integrators Scope moves beyond content and social to connect all communications around the needs of the consumer.

Connecteds Systems & teams organise, plan and execute marketing around the consumer. Strategy, operations and supply chains re-organised around the customer create new opportunities and differentiation.


1. Cooperation between depts. and silos

‘Obstructive’ for 81% of respondents

2. Thinking beyond a ‘campaign mentality’ in digital strategy ‘

Obstructive’ for 78% of respondents

3. Clarity of roles and responsibilities


4. Company culture



CEO

CMO

CDO

CTO

Commercial Dir.

Cross functional steering comm.

Overall responsibility

Leads the process

Involved

Who’s in charge?

50%

28%

17%

6%

8%

11%

11%

33%

64%

25%

14%

25%

39%

33%

11%

58%

61%

47%


And what’s the strategy?

51%

27%Somewhat clear

Very clear

Not at all clear

Not particularly clear 16%

5%


21%

63%

74%

28%

Advertisers have a well-informedunderstanding of the technology

landscape, informing in-house digitalmedia operations

‘Transformation’ is contingent on finding the right talent, in the right places and

this is a significant issue for us

Agree

Disagree

Source: WFA online survey; Apr-May16; Base = 49

Do we have talent?


100%

21%

0%

75%

External partnerships improve ourability to effectively navigate the global

ecosystem

Media agencies have a well-informedunderstanding of the technologylandscape, providing impartial

recommendations

Agree Disagree

Source: WFA online survey; Apr-May16; Base = 49

It’s not me, it’s you…


“Just as we speak of a digital [client] transformation, there will be an agency transformation. Agencies will need to redefine their roles in the marketing process, this includes evaluating internal structures and processes.”WFA member


92% 87%

2%11%

Ad fraud is perpetuated by the structure & systems inplace in the digital media ecosystem

Our organization has concerns about the lack oftransparency and/or fraud in digital media and

programmatic

Agree Disagree

Source: WFA online survey; Apr-May16; Base = 49 wfanet.org @WFAmarketers #WFA

The cracks are beginning to show

wfanet.org @wfamarketersSource: WFA Compendium of ad fraud knowledge for media investors (June 2016). www.wfanet.org/adfraud

$50 billion by 2025; 2nd only to drug trafficking


Co

mp

lex

ity

(difficu

lty t

o p

ut

in p

lace

)

Time (speed to yield results)

Key: Bubble size = potential effectRed = Education & communicationGrey = StandardsBlue = People & technologyGreen = Governance

Set appropriate

metrics Contract. changes

Internal resource

Cyber security partners

Openinfo

sharing

Counter ad fraud vendors

Set clear expectations

Limit ROE

More

Less More

Source: WFA Compendium of ad fraud knowledge for media investors (June 2016). www.wfanet.org/adfraud

Much can be achieved by marketers to improve the situation


www.better.ads.org

• The Coalition is convening to evaluate and improve the consumer online advertising experience

• It will collect research data to analyse real people’s experience of different formats and frequencies

• Industry as whole (advertisers, ad tech and publishers) will then take action based on that data to stop the worst practices

• The Coalition is a global effort, but will recognise regional differences

http://www.better.ads.org/


• By 2022 10% of the world's population will be wearing clothes connected to the internet

• By 2025 the first implantable mobile phone will become commercially available

• By 2030, the world’s largest Internet company will be in the education business, and it will be a company we have not heard of yet.

• By 2030 basic computer programming will be considered a core skill required in over 20% of all jobs.

• By 2030 swarms of micro flying drones – swarmbots – will be demonstrated to assemble themselves as a type of personal clothing, serving as a reconfigurable fashion statement.

None of this is easy. Perhaps it will all become simpler in the future...or maybe not?

Sources: Global Agenda Council on the Future of Software & Society

WFA - World Federation of AdvertisersAvenue Louise 166B-1050 Brussels – Belgium

+32 2 502 57 [email protected] wfanet.org @wfamarketers

For more information, please contact:

Stephan LoerkeCEO

[email protected]_Lo

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